LG CEO Encourages Securing New Businesses and Expanding Growth Opportunities in MEA and India
Since being appointed to the role of LG CEO, William Cho has made changes internally and on the company’s business portfolio. What’s more, the CEO has taken the time to visit LG local offices and production sites in person around the globe. In the first half of the year alone, Mr. Cho already visited a total of 12 countries across Europe, Asia, the Middle East and North, Central and South America, traveling a total of 145,000 km – equivalent to three and a half laps around the globe.
At the start of June, CEO Cho visited Saudi Arabia, where he first toured the exhibition hall in Riyadh showcasing the NEOM City Project. There, the CEO was introduced to business opportunities in three projects: ‘The Line,’ a 170km-long eco-friendly vertical city; ‘Oxagon,’ an octagonal high-tech industrial floating complex; and ‘Trojena,’ an iconic mountain resort. Following an in-depth discussion on the NEOM projects, the CEO attended a management meeting to discuss mid- to long-term business strategies in the Middle East and Africa (MEA) region.
“LG will secure various business opportunities in a wide range of fields such as mobility, air solutions and commercial displays as well as home appliances, TVs and IT for the NEOM City project by leveraging the company’s innovative technology accumulated over the years,” said CEO Cho.
The CEO then toured the company’s air solutions factory in Riyadh, the production base of the company’s premium air conditioners equipped with high-efficiency parts. With excellent cooling performance and high energy efficiency, LG’s air solution products are optimal across the MEA region, where there is a high demand for air conditioners due to the year-round hot climate.
“Our presence in Saudi Arabia is of utmost importance, even on a global scale. Our local factory aligns with the Saudi Vision 2030 and plays a core role in producing green energy level products while forming the central production base for the region, exporting to up to 16 countries in the middle east and Asia,” said Mr. Cho. “LG will keep taking initiatives to achieve sustainable growth as well as further strengthen the company’s position as a market leader.”
The CEO’s next destination was India, the world’s most populace nation and a market of growing importance for LG, where the CEO addressed local staff about the company’s future direction.
LG’s Indian subsidiary, celebrating its 26th anniversary this year, has achieved a dominant position in the Indian market by strengthening its infrastructure – establishing a locally-complete business that encompasses sales and production subsidiaries and R&D centers.
In India, Mr. Cho visited LG brand stores, R&D centers and home appliance and TV production lines, witnessing local operations in action and learning about the strategies the subsidiary is employing to boost business competitiveness and secure future growth engines.
CEO Cho’s first stop was the New Delhi sales subsidiary, where he spoke with key staff members about new business opportunities, such as electric vehicle charging solutions and EduTech utilizing digital whiteboard and IT solutions.
“In India, which boasts a large market and considerable growth potential, the company will build on its No. 1 market share and strategically develop future businesses,” said Mr. Cho.
Speaking with local personnel, CEO Cho also stressed the importance of the brand’s growth in online commerce. LG is targeting increased online sales in India through implementing a differentiated digital strategy founded on a deep understanding of, and empathy for, Indian culture. Earlier this year, responding to the soaring popularity of online shopping in India, the company established an online brand shop (OBS) and launched a direct-to-consumer (D2C) business.
CEO Cho’s Indian itinerary also included the cities of Noida and Pune, where he examined the company’s home appliance and TV product lines and looked into the current status of converting it into an eco-friendly smart factory. LG has pledged to convert 100 percent of the energy used by all production bases around the world into renewable energy by 2025. The company will also increase investment in these two plants this year to expand their capacity to produce premium home appliances. LG washing machines, air conditioners, TVs and monitors produced in these plants are sold not only locally but exported to countries in the MEA region.
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